creating long term value - … · braking systems for alstom’s mp14 paris metro trains. contracts...

VALUECREATING LONG TERM

ACTIVIT Y REPORT 2015/16

IN MOTION2 / New multi-product

manufacturing site

3 / Increase in Indian footprint

4 / Faiveley NeoFlexx® Disc in passenger operation

5 / Combination with Wabtec to create a global rail leader

6 / New platform orders signal regained customer confidence

7 / Deployment of our Values

8 / Key role in Paris metro

DELIVERINGPERFORMANCE

10 / CEO’s message

12 / Wabtec combination

14 / Our Executive Committee

15 / Our financial performance

16 / Our QHSE performance

CREATINGVALUE

20 / Shape

21 / Execute

22 / Create

23 / Develop

24 / Grow talent

STRENGHTENINGOUR BUSINESS

26 / Access & Mobility

28 / Brakes & Safety

30 / Energy & Comfort

32 / Services

34 / China

36 / A worldwide partner

ACTIVITY REPORT 2015/16FAIVELEY TRANSPORT 1

Faiveley Transport is a world leader in products and engineering services

for the rail industry.

We offer high added-value technical solutions to help our customers build and operate

trains that are safe, reliable and cost-efficient throughout their life cycle. Our global footprint, with nearly 6,000 employees in 24 countries,

ensures we are close to our customers, and to major rail markets.

As the rail industry evolves, we are moving forward: developing world-class production

facilities, innovating to create highly efficient products, and pursuing a combination

with Wabtec Corporation. Our aim: to secure our long-term leadership position and in doing so, provide the best possible

components, systems and services to our customers.

ACTIVITY REPORT 2015/16FAIVELEY TRANSPORT 3

IN MOTIONINCREASE IN INDIAN FOOTPRINTIn India, one of our four key markets, we extended the capacity of our site in Hosur, near Bangalore. This site utilizes our new ERP system and has been FWE certified: it will allow us to offer our full range of systems and services to our Indian customers and abroad. In 2015-16, we began manufacturing doors at the site, and

increased our HVAC capacity.

FWE certification for seven sites

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The Faiveley Worldwide

Excellence (FWE) program was

launched two years ago to

standardize the way we operate

across the organization. Sites

that implement the program’s

operating model and best

practices in areas such as quality

and risk management become

FWE certified. The certification

is intended as a demonstration

of excellence, and used

alongside external certifications

such as ISO 9001. To date,

seven sites have been certified.

They include sites in Germany,

China, France, India and the

Czech Republic.

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NEW MULTI- PRODUCT MANUFACTURING SITE IN THE CZECH REPUBLICIn 2016, Faiveley Transport opened a 20,000 m2 state-of-the-art industrial facility in Plzen, Czech

Republic. It will be used to manufacture pantographs, power collectors and auxiliary inverters as

well as to assemble buffers, couplers, and brake and door components. With improved logistics,

production flow and working environment, the facility is designed to provide the highest standards

of quality to our customers, and of safety to our employees.

ACTIVITY REPORT 2015/16FAIVELEY TRANSPORT 54 IN MOTION

FAIVELEY NEOFLEXX® DISC IN PASSENGER OPERATIONIn August 2015, we began field trials with Swiss Federal Railways (SBB) of the Faiveley NeoFlexx® Disc. The innovative brake disc uses patented manufacturing technology to provide customers with flexibility in design and dimensions and faster time to market. Superior reliability and low weight also help optimize total cost of ownership. We are now delivering the disc to another European operator, and laying the groundwork for serial manufacturing at our plant in Witten, Germany. We expect to receive our first commercial orders for the disc in 2016-17.

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REDUCTION IN WEAR COMPARED TO A STANDARD BRAKE DISC

-20%

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COMBINATION WITH WABTEC TO CREATE A GLOBAL RAIL LEADERA proposed combination with Wabtec Corporation reached a number of milestones, including

agreement between the two parties and approval by our Works Council. Review by competition

authorities in Europe and the United States is underway. The combination would secure the

long-term future of Faiveley Transport by capitalizing on the complementary strengths of the two

companies to create a global player with combined sales of around €4 billion. The transaction is

expected to close end-2016.

6 IN MOTION ACTIVITY REPORT 2015/16FAIVELEY TRANSPORT 7

NEW PLATFORM ORDERS SIGNAL REGAINED CUSTOMER CONFIDENCE2015-16 was a bumper year for orders on new platforms, reflecting our customers’ renewed faith

in our ability to deliver high quality, reliable products.

DEPLOYMENT OF OUR VALUES2015-16 was the year in which our 5,950 people fully adhered to our values: Collaborative, Reliable and Passionate. Having worked with our employees to define these values in 2014-15, this year was about communication. We translated the values into 21 languages and explained them via information booklets and induction courses for new employees. We also included them in our performance management system. The aim: to reinforce a shared culture, and ensure our people feel part of One Faiveley.

Contracts on our customers’ new

platforms are extremely important to

Faiveley Transport. This is because new

platforms are highly likely to be sold in

several countries, thereby generating

future opportunities for the Group. In

2015-16, we won new platform contracts

with four major customers: Alstom,

Siemens, Bombardier and CRRC. In Germany, we will supply HVAC

and braking systems for the 82 new

Rhine-Ruhr Express (RRX) trains

to be built by Siemens. The contract,

which totals over €25 million, includes

overhaul of brake parts for 10 years.

Specific technical solutions were

designed to support Siemens in

delivering unrivalled levels of reliability,

comfort and sustainability.

worth more than €60 million and include

braking systems, couplers, cabin HVAC

and auxiliary converters. Bombardier has

options to build an additional 710 cars.

Collaborative Reliable Passionate

We are Faiveley Transport.

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In Paris, we are supplying HVAC and

braking systems for Alstom’s MP14

Paris metro trains. Contracts for the first

35 trains amount to nearly €15 million:

more than 180 additional trains could

be delivered over a 15-year period. Our

energy-efficient HVAC systems and

efficient brake systems contribute to

the project’s objectives of low energy

consumption, high performance and

ease of maintenance.

In Brussels, we are supplying a wide

range of products to Bombardier for

their M7 double-decker train cars. The

contracts*, which cover 355 cars, are

In China, we are working with the

recently-formed giant CRRC, supplying

HVAC systems for MBTA’s fleet renewal

metro project in Boston. The contract,

which totals €15 million, reflects CRRC’s

confidence that Faiveley Transport is the

right supplier to provide support in its

first project in the United States.

NEW PLATFORMS

*Contracts to supply auxil iary converters were signed during the 2015-2016 financial year. The contracts for all other elements were booked in the f irst quarter of 2016-17.

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8 IN MOTION

Faiveley Transport saw solid sales in 2015-16, as the benefits

of our Creating Value 2018 strategic plan started to be felt

across the business. Our clear focus on both quality and

employee safety contributed to our customers’ renewed

confidence. This, in turn, resulted in significant orders during

the year, including contracts on new customer platforms.

Looking ahead, we will continue to execute our strategic

plan, led by our reinforced senior management team, as we

work towards the proposed combination with Wabtec.

DELIVERINGPERFORMANCE

Faiveley Transport will play a key role in

the automation of line 4 of the Paris metro,

following RATP’s award of a €75 million contract

to provide platform screen doors for 29 existing

and new stations. Working in consortium with

Eiffage Energie Ferroviaire, we will develop,

supply and install semi-full-height platform

edge barriers at 27 existing stations and 2 new

ones. To meet RATP’s requirements for zero

service interruption and maximum safety during

installation and testing, we will pioneer a new

modular fitting system. Full automation of the line,

which is expected to deliver major improvements

in passenger service, is scheduled for 2022.

Our Services Division recorded organic

growth of 8.8% (13.4% at constant

currencies) during 2015-16.

This strong growth was the result of

record order volumes the previous year,

particularly on large overhaul programs

in the UK, Australia and the US.

It took us one step closer to our

Creating Value 2018 goal to rebalance

our sales from Original Equipment

towards Services: the Services Division

now accounts for 45% of our total

sales. Strong growth also contributed

to our improved profitability*

as after-sales enjoy higher margins

than Original Equipment.

*Adjusted Group operating profit, excluding restructuring costs and costs related

to the planned combination with Wabtec.

KEY ROLE IN PARIS METRO

Strong growth in Services

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ACTIVITY REPORT 2015/16FAIVELEY TRANSPORT 1110 DELIVERING PERFORMANCE

STÉPHANE RAMBAUD-MEASSON, CHIEF EXECUTIVE OFFICER OF FAIVELEY TRANSPORT AND CHAIRMAN OF THE MANAGEMENT BOARD, DISCUSSES HIGHLIGHTS OF 2015-16, INCLUDING PROGRESS ON THE CREATING VALUE 2018 STRATEGIC PLAN.

Why is the proposed combination with Wabtec attractive?

The proposed combination with Wabtec would

be an excellent strategic move for Faiveley

Transport. The complementary nature of our

activities is striking, both in terms of product

range and geographic coverage. This

transaction would allow us to pursue our aim of

building a global leader in rail equipment and

services in the Passenger Transit field.

What is the current state of the rail market in Faiveley Transport’s key geographies?

Year on year the rail market is growing in line

with UNIFE* projections. This steady growth

masks some differences depending on product,

segment and geography.

We have already started to see a downturn in

freight in the United States, as well as in

mining-dominated countries, but this is largely

offset by overall growth in the transit market.

Europe has been slow during the last couple of

years, but we see it stabilizing, with growth

coming from northern Europe.

China remains a strong market, driven by the

expansion of the high-speed rail network, a large

number of metro projects, and the emergence of

Light Rail Vehicles, albeit with lower growth than

in previous years. Finally, India is booming,

driven by a large number of metro projects and a

fast-paced program of modernization of Indian

Railways. It is a market where we enjoy a strong

reputation and position.

What progress have you made on customer satisfaction and operational excellence?

We have demonstrated to our customers

that we are reliable and have enhanced our

control over the entire project value chain,

putting in place strong governance of our

projects. We have put quality at the top of the

agenda, and the improvements we have made

are visible in the indicators we systematically

monitor. These include non-conformity reports

(NCRs), a measure on which I believe we

outperform the industry today.

footprint and cost base in order to improve

our performance, and our service to

customers. In January we opened our new

industrial site in Plzen in the Czech Republic.

A multi-product facility, it increases our

competitiveness in Europe.

In India, one of our four key markets,

we extended the capacity and capabilities

of our Hosur site, near Bangalore, to cover

our full product portfolio and we invested

to master the special processes that are

unique to our industry. The site is booming,

and turnover has increased sharply,

demonstrating the logic of our investment.

In technology, we invested in a number of

areas. I would like to highlight Faiveley

NeoFlexx® Disc, whose innovative production

process brings significant benefits to

customers, including shorter time to market,

reduced weight and lower lifecycle costs.

Finally, I would like to stress our solid organic

growth, driven by the performance of our

Services business, which is a key driver

of our profitability.

What were the year’s highlights in terms of contracts?

Our most important wins are those where we

have gained positions on our customers’ new

platforms. This is because new platforms

have a high probability of being sold

elsewhere, making us well positioned to win

more projects going forward.

For example, we won a landmark project with

Siemens for the new Rhine-Ruhr Express

trains, the largest regional project in Germany

last year. Bombardier awarded us contracts

for several products for their M7 commuter

train in Belgium, one of the largest European

platforms today. And we won contracts on

Alstom’s new Metropolis platform.

We also won projects in Australia, India and

the Americas demonstrating our strength in

major markets outside Europe.

How would you characterize the year?

2015-16 was a very positive year for Faiveley

Transport, and one of intense change. It was

the first year of our Creating Value 2018

strategic plan, in which we successfully

achieved major milestones. It was also a year

of transition as we laid the groundwork for

a proposed combination with Wabtec. We

regained our customers’ confidence, winning

a number of landmark projects, which I see

as testimony of our growing reputation for

strong execution. And we generated strong

financial results in terms of sales, profitability

and cash flow.

Last year you unveiled the Creating Value 2018 strategic plan. What were the key achievements in the first year?

One of the key objectives of Creating Value

is to create a more efficient industrial

What were the principal reasons behind your increase in profitability in 2015-16?

Our contract margin has improved, driven

by three factors. The first is improved project

execution, which has resulted in far fewer

project margin deteriorations. The second is

our mix between services and original

equipment, with higher-margin services now

accounting for 45% of total sales.

We also enjoyed higher sales volumes.

This is important as we had taken the

decision to increase our cost structure

to gain better control. While we booked

one-off costs relating to restructuring and

the Wabtec transaction, our adjusted Group

operating profit was slightly above our

market guidance.

What are your priorities in 2016-17?

Looking ahead to 2016-17, there are three main

priorities. We will focus on closing the Wabtec

deal, completing the regulatory process. We will

work hard to deliver our full year guidance to

the market. And we will execute our three-year

strategic plan.

We have delivered the first visible milestones

of our transformation, but Creating Value 2018

is a mid-term change program. We have agreed

with Wabtec that we will pursue the plan after

closing, incorporating best practices where

appropriate. In this way, we will position the

combined company for the future, and serve

our customers even better.

*UNIFE: Union des Industries Ferroviaires Européennes, a professional association for the railway supply industry. DELIVERING

ON OUR PROMISES


WABTEC COMBINATION: CREATION OF A GLOBAL RAIL LEADER

On 27 July 2015, Faiveley Transport

announced its entry into exclusive

negotiations with Wabtec Corporation.

Following review with employee

representative bodies, on 6 October 2015

the Faiveley family and Wabtec Corporation

signed the share purchase agreement as

well as a shareholders’ agreement; Faiveley

Transport and Wabtec Corporation signed

the agreement related to the tender offer.

Wabtec’s firm offer relates to the acquisition

of the entire Faiveley Transport share

capital, valuing it at an enterprise value

in the region of €1.7 billion, and would give

rise to one of the world’s leading rail

equipment manufacturers with combined

sales of approximately €4 billion. The

complementary nature of the two

companies’ activities is strong, both in

terms of product range and geographic

coverage (see opposite).

Finalization of this project is subject to

the fulfilment of standard closing conditions

and specifically to the approval of the

competent competition authorities (the

European Commission and the US

Department of Justice, as well as Russia’s

Federal Antimonopoly Services)*.

In this context, the acquisition of the

controlling interest from the Faiveley family

by Wabtec is expected to occur in the fourth

quarter of 2016 and the proposed tender

offer will be filed with the Autorité des

Marchés Financiers (AMF – French financial

markets authority) in the weeks following

this change in control.

“The proposed combination with Wabtec secures our long-term growth. The consolidation of our customer base we have seen to date is only the beginning. As major industry players merge, we need to make sure we provide customers with the best possible offer, as well as withstanding competition.” STÉPHANE RAMBAUD-MEASSON, CEO of Faiveley Transport and Chairman of the Management Board

€4bnIN SALES

TransitHEADED

BY STÉPHANE RAMBAUD-MEASSON:

AROUND 53% OF TOTAL SALES

FreightBUILDING ON WABTEC’S

HISTORICLEADERSHIP POSITION:

AROUND 47%OF TOTAL SALES

7%OTHERS28%

EUROPE

54%AMERICAS

10ASIA-PACIFIC

SALES BY GEOGRAPHY (ESTIMATE)

Two market leaders with complementary strengths

FAIVELEY TRANSPORT

…with two strongsegments

13,000EMPLOYEES.

50 MANUFACTURINGPLANTS

IN SALES EMPLOYEES.56 SITES

WORLDWIDE

Increasingly global57% OF SALES IN EUROPE; 22% INASIA-PACIFIC; 20% IN AMERICAS

Strength in transitMAJOR NEW CONTRACTS ON NEW

METRO AND PASSENGER TRAINPLATFORMS IN 2015-16

€1.1bn 5,950

*At the time of publication, the project had already been approved by the Russian competition authority. The process for applying to the European Commission for authorization was ongoing. Following the formal notification submitted on 4 April 2016, on 12 May 2016 the European Commission opened an in-depth investigation (Phase 2) with respect to a few products areas which could be affected by the combination. In the United States, the Department of Justice was continuing the second request review in relation to the planned acquisition.

ServicesBOTH FAIVELEY TRANSPORT AND WABTEC HAVE A STRONG FOCUS ON DEVELOPING

AFTERMARKET PARTS AND SERVICES: 62% OF WABTEC TOTAL SALES COMEFROM SERVICES; AT FAIVELEY TRANSPORT, THE FIGURE IS 45%

WABTEC

The combination willcreate a leading global player…

$3.3bnIN SALES

United StatesA LEADER IN ITS HOME COUNTRY,

WITH 53% OF SALES TO THE US

Freight leader62% OF TOTAL SALES

IN THE FREIGHT SEGMENT


FAIVELEY TRANSPORT STRENGTHENED ITS EXECUTIVE COM-MITTEE IN 2015-16 BY APPOINTING TWO NEW MEMBERS. THEIR EXPERTISE WILL HELP US ACHIEVE THE GOALS SET OUT IN OUR CREATING VALUE 2018 STRATEGIC PLAN.

OUR EXECUTIVE COMMITTEE

ORGANIC GROWTH IN THE ORDER BOOK

Building on last year’s record order book, the Group achieved further organic growth of +1.6% (-1.6% when including the negative 3.2% currency effect). This positive momentum reflects customers’ renewed confidence in Faiveley Transport. Major customers entrusted us with new platforms, and we won significant contracts in all regions.

STRONG GROWTH IN SERVICES

Total sales grew by 5.4%, led by a strong performance from the Services Division. Thanks to exceptional organic growth of 8.8%, Services now accounts for 45% of sales. Original Equipment Divisions’ sales declined due to the planning of deliveries on major platforms. Around the world, Americas recorded the strongest sales growth performance.

11.9% INCREASE IN ADJUSTED GROUP OPERATING PROFIT

Better project execution and an increase in sales of higher-margin Services contributed to a significant increase in gross profit. Despite a significant increase in SG&A* linked to the implementation of the strategic plan, Faiveley Transport increased its adjusted Group operating margin to 9.8% of sales, in line with its Creating Value objectives.**

€1,105 MILLION SALES

€38.5 MILLION FREE CASH FLOW

9.8%ADJUSTED GROUP OPERATING MARGIN

2011/12 2011/122012/13 2012/132013/14** 2013/14**2014/15 2014/152015/16 2015/16

Operating margin* (in % of sales)(in € millions) (in € millions)

OUR FINANCIAL PERFORMANCE

10.4 11.2

901988 957

1,0481,105

9.3 9.2 9.8

outlook: they represent three continents,

and around half are non-French. In 2015-16,

we welcomed two new members to

the Committee: Mihaela Andronic, Vice-

President HR and Internal Communication;

and Hakim Aoudia, Vice-President Quality

and HSE. The appointment of these two

talented executives reflects the priority given

to their two areas of expertise in the strategic

plan: developing talent and improving quality

are both seen as essential to the ongoing

success of the business.

Faiveley Transport’s Executive Committee

oversees operational activities, notably

the Faiveley Worldwide Excellence program

and various initiatives in place to deliver

the Creating Value 2018 strategic plan.

Its members benefit from an international

From left to right:

STÉPHANE RAMBAUD-MEASSONChief Executive Officer

and Chairman of theManagement Board

GUILLAUME BOUHOURSChief Financial Officer

Member of the Management Board

LILIAN LEROUXPresident Brakes & Safety

JUN HE President China

SIMON CHARLESWORTHVice President Sales & Marketing

OLIVIER RAVITPresident Energy & Comfort

HAKIM AOUDIAVice President Quality and HSE

JÉRÔME SPENCER President Services

THOMAS FESERVice President Corporate Development

ALAIN DESCHÊNESVice President Operations and IT

MIHAELA ANDRONICVice President Human Resources

and Internal Communication

RALPH FÜRDERERChief Technology Officer

RÉMI CAUSSEPresident Access & Mobility

Order book Sales and operating margin

* Sales, General & Administrative costs. ** 11% to 12% by 2017/18.

* Adjusted Group Operating margin. ** Restated figures from IFRS 10, 11, 12 impact.

1,8471,690 1,616 1,660

1,877


OUR APPROACH HAS BROUGHT REAL BENEFITS FOR CUSTOMERS

OUR QUALITY STRATEGY IS BASED ON 3 PILLARS

CERTIFICATION HELPS US IMPLEMENT THIS STRATEGY – AND DEMONSTRATE PROGRESS

7 SITES CERTIFIED

Faiveley Worldwide Excellence

OUR QHSE PERFORMANCEFaiveley Transport focuses its work in quality,

health & safety and the environment (QHSE)

around the needs of two key stakeholders:

employees and customers.

Our approach in recent years has evolved

from the reactive to the truly proactive,

a fact reflected in our clearly defined

structure for managing QHSE across

the Group. This is backed by strong and

visible leadership commitment: in 2016,

the Vice President for QHSE was appointed

to the Group’s Executive Committee.

Putting quality at the heart of our approach

Our central objective is to provide our

customers with the best possible quality

by putting in place the right systems, tools

and methods. Our strategy for improving

our quality performance, supported by

our FWE (Faiveley Worldwide Excellence)

certification program, is delivering strong

results for our customers (see opposite).

FWE represents a key plank of our approach.

All sites follow the Faiveley Management

System and our Internal Control rules,

to improve and monitor their QHSE

and operational performance. Sites reaching

the same high consistent level of quality

achieve FWE certification.

We have also introduced tighter control

of our supply chain and have deployed

Faiveley Transport quality residents

on major client sites.

New initiatives in Health & Safety

We believe our people are our greatest

resource, and that their wellbeing contributes

to our ability to deliver high quality products.

As such, we strive to provide facilities

and equipment that meet all the major

international HSE standards and have also

set an objective of zero workplace accidents.

In 2015-2016 we launched several initiatives

to emphasize a strong safety culture

among all employees. Employees received

regular personal messages from our

CEO on the importance of safety, reinforced

by Safety Days with top executives

and communications campaigns deployed

across all sites.

Improved environmental management

Finally, we take steps to minimize

our environmental impacts resulting from

our worldwide production. We have put

in place Environmental Management Systems

and certified 19 of our production sites

to ISO 14001 standard, and have launched

our first initiatives to reduce energy

and water consumption.

FAIVELEY TRANSPORT’S QHSE INITIATIVES ARE INCREASINGLY FOCUSED ON PREVENTION: PUTTING IN PLACE THE RIGHT SYSTEMS UPSTREAM, AND STANDARDS AND TRAINING TO ENSURE OUR EMPLOYEES REMAIN SAFE, OUR PRODUCTS ARE OF HIGH QUALITY, AND OUR IMPACT ON THE ENVIRONMENT IS MINIMIZED.

INTERNAL

INTERNATIONAL RAIL INDUSTRY

ReactivityIN HANDLING CUSTOMER ISSUES

Achieved by implementing a best practice approach to deal with

customer issues rapidly and effectively using a QRQC approach (Quick

Response Quality Control).

ControlOF PRODUCTION BASICS

Investment in better control throughout our supply chain of key special

processes such as welding and painting. We also deploy

Faiveley Transport quality representatives to client sites.

AnticipationFOR NEW PROJECTS

Introduction of a system of “gate reviews” to track projects from the early stages of design and development and anticipate future milestones and risks.

The system also takes into account previous lessons learned.

30 SITES CERTIFIED

ISO 9001

19 SITES CERTIFIED

IRIS

90%reduction in PPM

SINCE 2012, WE HAVE REDUCED OUR PARTS PER MILLION (PPM) DEFECTS MORE THAN TENFOLD

75%reduction in backlogSINCE 2012, WE HAVE REDUCED OUR BACKLOG

OF CUSTOMERS’ NON-CONFORMITY REPORTS BY FOUR

ACTIVITY REPORT 2015/16FAIVELEY TRANSPORT

Our strategic three-year plan, Creating Value 2018,

is designed to bring tangible benefits to customers,

share holders and employees. It aims to help the Group

become more competitive, and grow profitably.

Structured around five building blocks, it encompasses all

operational aspects of our business, from our industrial

footprint and organization, to our growth strategy and our

people. In 2015-16, the first year of the plan, we made

substantial progress, driving innovation while putting in

place solid processes to attain operational excellence.

ShapeAdapt our industrial footprint

and our organization to improve our performance and our

competitiveness.

DevelopFocus and accelerate

our commercial initiatives to achieve steady and profitable

growth that outpaces the rail market.

Grow talentPromote a shared culture

and a working environment which foster talent development

and team commitment.

ExecuteAchieve operational excellence

in terms of Quality, Project management, and On-Time Delivery in order to provide

full satisfaction to our customers and improve our financial

performance.

CreateInvest in Product and System

innovation to maintain a technological edge, meet

customers’ needs and improve our competitiveness.

CREATINGVALUE

19

2018

CREATINGVALUE

20,000 m2

20 CREATING VALUE ACTIVITY REPORT 2015/16FAIVELEY TRANSPORT 21

ExecuteWE AIM FOR OPERATIONAL EXCELLENCE TO MEET THE NEEDS OF OUR

CUSTOMERS AND IMPROVE OUR OWN FINANCIAL PERFORMANCE. STRATEGIC INITIATIVES TARGET IMPROVEMENTS IN QUALITY, PROJECT

MANAGEMENT, ON-TIME DELIVERY AND COMPETITIVENESS, THROUGH USE OF NEW WAYS OF WORKING AND TOOLS.

SIZE OF THE NEW PLZEN MANUFACTURING FACILITY IN THE CZECH REPUBLIC

AIM TO DOUBLE OUR BUSINESS

IN INDIA OVER THE 3 YEARS OF THE

CREATING VALUE PLAN

OF SALES INVESTED IN CAPITAL

EXPENDITURE

REORGANIZATION COMPLETED

3.4%x 2

Fully empowered

Divisions

China management team staffed

Finance organization

deployed

HR business model

underway

ShapeFAIVELEY TRANSPORT IS ADAPTING ITS INDUSTRIAL FOOTPRINT, DEVELOPING

MANUFACTURING AND PROCUREMENT IN LOW COST COUNTRIES WHILE MAINTAINING ENGINEERING AND PROJECT MANAGEMENT IN ESTABLISHED REGIONS

OF EXPERTISE. WE ARE ALSO RESHAPING OUR ORGANIZATION TO IMPROVE COMPETITIVENESS AND PERFORMANCE.

In line with the Creating Value 2018 strategic plan,

Faiveley Transport increased capital expenditure dur-

ing 2015-16, to increase its footprint, and improve

customer experience and efficiency.

Our largest investment was the development of the

industrial site at Plzen in the Czech Republic, com-

pleted in nine months. The multi-product, state-of-

the-art plant replaces former installations at Blovice,

around 20 km away, and increases quality as well as

cost-effectiveness. We have also invested significantly

in our Indian footprint, which supports both the local

market, and the export market for our European custom-

ers. We have extended capacity in specific processes

such as painting, and have opened an engineering

center in Bangalore.

Other transformation projects are ongoing in Germany,

France and Scandinavia, as well as in China, where we

are developing a footprint for our brakes business.

Faiveley Transport sees operational excellence as key

to its future success: it enables us to grow profitably, by

meeting the needs of our customers for high levels of

quality and service.

Our Faiveley Worldwide Excellence (FWE) program

is central to our efforts to achieve operational excel-

lence. It standardizes the way we operate, via the

Faiveley Management System, which establishes

the model and best practices to be used across the

business, and the Internal Control manual, which

defines our approach to risk. An important part of

FWE is certification, which is awarded following an

audit to confirm a site has met the program’s objec-

tives. This year, seven sites gained certification.

We also embarked on a series of programs to

strengthen operational functions and risk manage-

ment. New IT tools are being rolled out to harmo-

nize our procedures, and in 2015-16, we introduced

the new enterprise resource planning (ERP) tool at

12 sites. Three initiatives are in place to improve

project management. The creation of a Project Man-

agement Office (PMO) has enabled us to offer a

strong cross-divisional center of competencies and

grow our talent in this area of expertise. We have

instigated a program to select and pool suppliers

at Group level. And we have introduced global gov-

ernance across our projects that encompasses not

only financial reviews, but also purchasing, supplier

development, and risk identification and planning.

The result is that project execution has been enhanced

across all Divisions. We have also improved our cash

and inventory management at all critical sites, through

the use of monthly reviews and sales forecasts, in turn

enabling us to improve on-time delivery.

SITES CERTIFIED UNDER THE FAIVELEY WORLDWIDE

EXCELLENCE PROGRAM

SITES USING THE NEW ERP TOOL

7 12

22 CREATING VALUE ACTIVITY REPORT 2015/16FAIVELEY TRANSPORT 23

DevelopWE AIM TO ACHIEVE STEADY, PROFITABLE GROWTH AND OUTPERFORM

THE RAIL MARKET BY REBALANCING THE BUSINESS TOWARDS SERVICES, AND BY FOCUSING ON FOUR PRIORITY REGIONS – CHINA, INDIA,

NORTH AMERICA AND WESTERN EUROPE. WE ALSO EXAMINE MERGER AND ACQUISITION OPPORTUNITIES.

CreateINNOVATION IN PRODUCTS AND SYSTEMS HELPS FAIVELEY TRANSPORT

MAINTAIN A TECHNOLOGICAL AND COMPETITIVE EDGE. WE SEEK TO MEET CUSTOMERS’ NEEDS FOR ENERGY EFFICIENCY,

MASS REDUCTION, SYSTEMS RELIABILITY, AND LOWER COSTS – BOTH FOR ORIGINAL EQUIPMENT, AND THROUGHOUT A PRODUCT’S LIFECYCLE.

Faiveley Transport invests around 2% of annual sales

in research and development, the majority of which is

used to develop solutions that meet specific needs

expressed by the Group’s existing customers.

We invest in three types of innovation. The first is

“pure” innovation – new products that demonstrate

Faiveley Transport’s technological edge. The second is

performance improvements to existing products. The

third is product development to meet new regulatory

requirements.

The 30-35 year life span of rail products makes Total

Cost of Ownership (TCO) an important consideration

for customers. Energy efficiency and reliability both

impact operating costs, as do ease and cost of main-

tenance. Customers are also interested in innovations

that improve configurability. Many of our customers

want to receive flexible, plug and play solutions from

system suppliers. A good example of how we respond

to these two needs is Faiveley NeoFlexx® Disc, a brake

disc used for coaches, locomotives, regional and high-

speed trains. It allows for customization depending on

requirements – for example it can be made from steel,

which offers lower upfront costs, or aluminum, which is

lighter, and offers better thermal properties and dura-

bility. An all-new manufacturing process allows for

flexible production and logistics, reducing lead time.

ESP4C, our new sliding plug door mechanism, also

meets customer needs for flexibility by offering a single

door architecture for different types of LRVs, metros

and regional trains. We have reduced space envelope

by over 50%, and weight by 30%, thereby meeting

needs for lower TCO.

Exploring the potential for mergers and acquisitions

represents a core part of our Develop pillar. The most

significant events of 2015-16 therefore relate to the

progress we made in our proposed combination with

Wabtec (see pg 12-13).

Separately, we made progress in further strengthening

our Services division, which saw strong sales growth

and order intake. We structured our organization to

provide local support to customers, expanding our

engineering services offering, and improving delivery.

The aim: to take advantage of opportunities related to

our installed base, and accelerate growth.

Our four priority regions are those where we see

growth and, therefore, an opportunity to outperform

the rail market. We have developed plans for each of

these regions, won major contracts in 2015-16, and

believe we are well positioned for large projects com-

ing to tender.

SPACE ENVELOPE REDUCTION WITH ESP4C

WEIGHT AND WEAR REDUCTION WITH FAIVELEY

NEOFLEXX® DISC

-50% Up to 20% 8.8%1

WESTERN EUROPE

2

NORTH AMERICA

Customer intimacy

Greater accountability

Faster decisions

Local support

3

CHINA

4

INDIA

REGIONAL ORGANIZATION IN SERVICES

LIKE-FOR-LIKE GROWTH IN SERVICES

IN 2015-16

FOUR PRIORITY REGIONS

ACTIVITY REPORT 2015/16FAIVELEY TRANSPORT 2524 CREATING VALUE

Our three Product Divisions – Brakes & Safety, Energy &

Comfort, and Access & Mobility – design, manufacture,

and market our equipment. Through our Services

Division, we support customers in optimizing the

lifecycle costs of their assets, by providing maintenance

and spares, and by retrofitting equipment. In China, the

world’s largest rail market, we have brought all our

products and services under one roof, to enable our

teams to offer customized solutions. This structure

enabled us to support our customers with specialized

teams across all regions.

OUR BUSINESSSTRENGTHENING

Grow talentTHE 5,950 MEN AND WOMEN THAT MAKE UP FAIVELEY TRANSPORT

ARE KEY TO OUR SUCCESS. WE ARE FOCUSED ON PROMOTING SHARED VALUES AND A WORKING ENVIRONMENT THAT INSPIRES COMMITMENT FROM OUR TEAMS, AND ON IDENTIFYING AND DEVELOPING OUR PEOPLE’S TALENT.

At Faiveley Transport, we recognize the vital role our

employees play in the company’s development, and

have put them at the heart of our Creating Value 2018

strategy.

One of the challenges of a large international Group is

fostering a shared sense of identity and purpose. Last

year, we carried out an in-depth exercise among employ-

ees to define the Group’s common values.

The result – “Reliable, Collaborative and Passionate” –

defines what makes us One Faiveley. This is why our

efforts in 2015-16 were focused on communicating and

translating these values, and including them in our per-

formance management system. Going forward, we plan

to include them in our selection process for new hires.

Another major focus during 2015-16 was on reinforcing

our project management capabilities. Our aim: to ensure

that our project managers have the skills they need to

perform their roles and ensure efficient delivery of pro-

jects. We worked to define a skills profile for project

managers that included both technical skills and soft

skills – for example, influencing and communications.

We then assessed our project managers against this tar-

get profile, and developed individual plans to help them

improve. We also invested in training, offering a program

in project management fundamentals at seven sites dur-

ing the year. Our next step is to develop a mobile learn-

ing platform. Our final focus was on talent reviews, as

part of our aim to identify and develop the Group’s future

leaders. We have now completed the full cycle of talent

reviews at site, Division and Executive Committee level.

Going forward, this will enable us to provide people with

rewarding career paths, and motivate our key talents.

RELIABLE

We can be counted on. We deliver our

commitments with integrity. We are accountable and

trustworthy partners.

COLLABORATIVE

We work as a global team. We listen

to and respect each other. We share

our knowledge and believe in our collective

contribution.

PASSIONATE

We are passionate about railways. Passion and

expertise are the pillars of our craft. We build on

them to address our customers’ needs

creatively and swiftly.

7

FAIVELEY TRANSPORT’S THREE SHARED VALUES ARE:

RELIABLE, COLLABORATIVE AND PASSIONATE

TRAINING ON PROJECT MANAGEMENT

FUNDAMENTALS CARRIED OUT AT SEVEN SITES

MAIN STREET

2

4

3

5

5

1

26 ACTIVITY REPORT 2015/16FAIVELEY TRANSPORT 27STRENGTHENING OUR BUSINESS

The Access & Mobility Division supplies

manufacturers, operators and railway main-

tenance bodies worldwide with a complete

range of passenger access systems and

platform screen doors.

As the market leader in platform screen

doors and automatic gates, we produce

door systems, as well as the surrounding

glass and metal panels. The external and

internal doors of trains, considered access

products, constitute the remainder of the

Division’s business activity.

Leveraging expertise, ensuring delivery

Retrofitting is an expertise that enables

Faiveley Transport to differentiate itself from

its competitors. We are able to work within

extremely tight space and time constraints.

In Lille, for example, we successfully fit plat-

form screen doors for the existing metro

line 1 at night, enabling it to open for normal

service during the day.

We continuously invest in research and

development to produce innovative prod-

ucts that reduce installation time and

improve security. Clear-FlowTM, for exam-

ple, is a higher, safer platform edge barrier.

Designed to facilitate retrofit projects with

its use of modular installation, it is able to

reduce installation time by 30%, resulting in

significant cost savings for customers.

Prototypes for other innovations include

new door operators able to serve multiple

transport systems and reduce weight and

volume. ESP4C, our compact door opera-

tor, targets the light rail, metro and EMU/

DMU markets with a high level of standardi-

zation using service-proven components.

Our new ways of working contributed

to our excellent reliability and track record

in delivery.

A record year for orders In 2015-16, the Division won several key

projects worldwide. In access doors, we

won contracts for lines 8 and 13 for CRRC

in Shanghai, the 93 MTRC trains for CRRC

in Hong Kong and for DMRC in New Delhi

as well as contracts in Latin America. We

gained record orders in platform screen

doors, including high value projects such

as the retrofit of line 4 of the Paris metro

with RATP, who also awarded us contracts

on line 14. We also won a contract with a

new customer: MHI Transportation Sys-

tems, a subsidiary of Mitsubishi Heavy

Industries, who awarded us the screen

doors contract for line 6 of the metro in

São Paulo, Brazil.

Going forward, we expect the market for

platform screen doors to flourish, thanks

to its added value in security and passen-

ger traffic, as well as its compatibility with

new metro lines and driverless trains.

In 2016-2017, we plan to continue our

regional development in order to manage

projects and manufacture locally in every

target region. Our ambition is to transform

our facility in the Czech Republic into an

export hub for Europe. We are also devel-

oping our industrial footprint in India to

better serve the local market.

1 Platform doors 2 Automatic platform gates 3 Access doors 4 Movable step and ramp

for disabled person 5 Interior doors

1. Glass bonding on RS10 door leaves, Hosur, India.

2. Door leaf glass fixation, Plzen, Czech Republic.

3. Platform Screen Doors of metro line 1 - before retrofit project -, Lille, France.

Faiveley Transport invests in research and development, creating innovative products that contribute to our strategic objectives to standardize our offer and reduce installation time. During 2015-16, we won high-value projects in the growing market for platform screen doors, as well as major contracts in access doors.

1.

Access & Mobility

PROJECTS TO BE DELIVERED BETWEEN 2016 AND 2020

1.

3.2.

36

1 Couplers and/or Draw gear 2 Buffers and self lubricated buffers 3 Air Generation and Treatment Unit 4 Brake Control (Pneumatic, electro-

pneumatic and electronic) 5 Brake frame 6 Wheel and axle mounted discs 7 Disc and tread brake units 8 Magnetic track brake 9 Sanding 10 Pantograph Compressor

MAIN STREET

10

4

5

5

7

9

6

1

2

3

1

8


ter support customers by offering the right

balance between performance and costs.

This year, we began seeing the benefits of

our investment to standardize and modu-

larize products. In brakes, our progress

in developing a catalog of standardized

products, with stringent testing programs

and protocols, resulted in increased suc-

cess in both transit and freight. In cou-

plers, we made significant progress in our

modularization program, and started to

see benefits in the form of improved time

to market and greater competitiveness.

We believe strongly in technical differentia-

tion and see Research and Development

as key to better serving our customers.

In partnership with Swiss Federal Rail-

ways (SBB), we put Faiveley NeoFlexx®

Disc into operation this year. This prod-

uct boasts significant market advantages

compared to standard brake discs, thanks

to its reduced weight, longer life cycle and

reduced energy consumption. Other inno-

vations include the ParkLock® concept, a

compact brake offering superior braking

force, and a new brake control system.

Developing international markets Contracts for couplers in India and China,

and activity in the freight sector, demonstrate

our progress in meeting customer demands

with standardized solutions. In addition

to existing contracts in India, we were

awarded a series of contracts for the Kochi

and Lucknow Metro Projects with Alstom.

We are also supplying braking systems to

Bombardier as part of a wider contract in

Delhi. Other major contracts included the

supply of couplers to CRRC Sifang for

the Hong Kong metro, braking systems

for Alstom’s Metropolis metro trains, for

use in Sydney, and braking systems and

10 years’ maintenance for Siemens’ Rhine-

Ruhr Express (RRX) trains in Germany.

We also received orders for more than

1,200 UIC integrated freight brake systems,

and it was a record year for orders in the

US freight market.

In 2016-2017, we aim to accelerate local

production in Czech Republic and India, to

the benefit of our customers. We are con-

fident that we will continue to benefit from

the positive trend in orders in both brakes

and couplers, an extremely active mar-

ket in India, and continued fleet renewals

in Europe.

Three business units – Transit Brakes,

Freight and Couplers – form the Brakes &

Safety Division. We offer complete braking

systems and safety solutions for all types

of rolling stock, and cover the entire brak-

ing command chain in trains.

While transit system customers require a

high degree of customization, the freight

sector is characterized by off-the-shelf

products.

Implementing the Creating Value 2018 strategic plan

Improved efficiency at all project levels,

greater standardization and increased

competitiveness were our main objectives

in 2015-16. For example, in Brakes Transit,

a single tender team of system engineers

and costing experts was created, to bet-

In 2015-16, the Brakes & Safety Division began to reap the benefits of its programs to standardize and modularize products, which form part of the Creating Value 2018 strategic plan. We also reduced time to market and increased market competitiveness with enhanced localized solutions and manufacturing for our customers.

Brakes & Safety

NEW PLATFORMS Contracts included braking systems for four new platforms by Alstom, Siemens and Bombardier

2.

1. Coupler trial testing, Hosur, India.

2. Wheel Mounted Discs (WMDs) Induction, Witten, Germany.1.

4

Paris

7:03

'

Enter

+ Einfg

0

MAIN STREET

6

6

6

6

1

2

5 5

7

7

3

4

6

5


The Energy & Comfort Division brings

together two product groups related to a

train’s energy management chain: Heating,

Ventilation and Air Condition (HVAC), and

Power & Information (auxiliary inverters,

pantographs, switches, CCTV and event

recorders).

By identifying and developing synergies

between products, the Division helps cus-

tomers increase energy efficiency, reduce

energy consumption, cut maintenance

costs, and decrease weight and space

envelope.

Major wins on new platformsAgainst the backdrop of a competitive

market, we won significant contracts in

2015-2016. The Group confirmed its posi-

tion as global market leader in HVAC

systems, supplying customers in Swit-

zerland, Germany, France, Belgium, India,

China, Russia and the United States. One

key contract included the supply of HVAC

systems for Boston metro MBTA to Chi-

nese manufacturer CRRC, the world’s

largest rolling stock manufacturer, in its

first project in the United States.

Other major contracts for new platforms

took advantage of product synergies.

Our ability to meet Bombardier’s require-

ments for reduced weight and space

envelope enabled us to win the contract

to supply auxiliary inverters and cabin

HVAC systems for 355 M7* train cars.

We are also supplying HVAC for Alstom’s

new MP14 Paris metro trains, and Stadler

Rail Group’s EC250 EuroCity high-speed

trains.

Innovating to meet customer needsWith customers increasingly demand-

ing local content, Faiveley Transport has

adopted a “glocal” strategy, focusing on

customer proximity and regional produc-

tion while upholding global standards. In

addition to our existing footprint in Europe,

China and the United States, we have

begun manufacturing in Hosur, India, and

are investigating production opportunities

in Turkey, Brazil and Russia.

Our response to price pressure is to focus

on added-value solutions that increase

energy efficiency and lower Total Cost

of Ownership. In 2015-16, we created a

cross-business Energy Efficiency Centre

Of Competence. We work with clients to

collect and analyze data relating to equip-

ment and use, before proposing custom-

ized solutions to optimize and reduce

their energy consumption. We make use

of service-proven technologies, such as

inverter integrated solutions, heat pumps,

and CO2 sensors regulating fresh air entry

and heat recovery, as well as our own pat-

ented innovations. With HVAC systems, for

example, accounting for up to 40% of a

train’s energy consumption, our EcoPark®

solution, currently being tested on SNCF

trains, provides attractive energy and cost

savings. Other solutions include lighter,

space-saving pantographs, as well as cus-

tomizable software for video vigilance and

event recorders.

Looking ahead, we see opportunities in

Asia Pacific and in the US. We also plan

to develop further in Turkey and Rus-

sia. We believe our technical expertise,

global business presence, and expertise

in energy efficient solutions will differenti-

ate us from competitors, and enable us to

meet customer needs.

In a competitive market, Faiveley Transport seeks to provide added-value solutions for customers that optimize total cost of ownership, notably by improving energy efficiency. We focus on research and development to create technical differentiation and meet customer needs.

1 Pantograph 2 Energy meter 3 Switch 4 Auxilliary power

converter 5 Heating, Ventilation

and Air Conditioning 6 Driving Aid

and recording 7 CCTV and passenger

information

-10%ENERGY SAVING THANKS TO OUR ECOPARK® SOLUTION

Energy & Comfort

*Contracts to supply auxiliary inverters were signed during the 2015-2016 financial year. The contracts for all other elements were booked in the first quarter of 2016-17.

1. Auxiliary power converter wiring, La-Ville-aux-Dames, France.

2. HVAC final assembly, Hosur, India.

3. Pantograph assembly Plzen, Czech Republic. 1.

2.

3.


1. Maintenance of the SW4 distributor, Amiens, France.

2. Brake disc inspection Ashford, UK.

Installation Remote diagnostic and predictive maintenance

Commissioning and training

Preventive & corrective

maintenance

Upgrades

Reliability and maintainability

studies

Friction pair Energy Saving Overhauls

1.

linked to our focus on customers. We

have adapted our organization to provide

better local support. No longer centered

on business units, our new regional

organization brings better customer

understanding and faster decisions.

We are also increasing localization to

improve our reactivity and turnaround

time for repair and overhaul projects:

examples include new sites in Morocco,

UK, Australia and Turkey.

We are improving the value we bring cus-

tomers via proactive sales strategies.

As a result of customer visits, we better

understand their needs and expectations,

enabling us to develop new services. We

are developing overhaul kits adapted to

customers’ specific programs, for exam-

ple, and bundling all their spare parts

needs together to help them simplify their

supply chain and logistics.

Targeting excellence in deliverySimilarly, we have strengthened our teams

and are working much more closely with

our customers’ supply chains on demand

management and forecasting. Our aim is to

maximize sales of parts, by driving excel-

lence in delivery. Cuts to lead times for

spares have been significant with strong

cooperation with customers. For exam-

ple, we have worked in partnership with

SNCF to reduce lead times to two weeks

for a list of products, resulting from strong

alignment between our supply chains. The

contract also represents the first step in our

shift to a distribution model with 48-hour

delivery targets. We are also working on

turnaround times to reduce the overall

duration of repairs and overhauls.

Increasingly, we are developing partner-

ships with customers. These are frequently

focused on innovation, such as our part-

nership in Switzerland with SBB to bring

Faiveley NeoFlexx® Disc into operation.

We are also developing digital services, for

example cloud services for ATESS black

box users, and real time CCTV streaming

for buses.

Going forward, we see clear opportuni-

ties to develop our Services business,

addressing our installed base systemati-

cally and proactively as a one-stop shop,

able to address all products with a single

point of contact for customers, and to pro-

pose innovative services focusing on ben-

efits for customers.

The Services division supports customers

with long-term maintenance of their original

equipment, including optimization solutions

and spare parts. Already the largest of the

five divisions, Services achieved like-for-like

sales growth of +9% in 2015-16. This strong

growth was the result of record order vol-

umes the previous year, particularly on large

overhaul programs in the UK, Australia and

the US. Key orders include services to sup-

port sales of the Faiveley NeoFlexx® Disc;

a 10-year contract for supply and over-

haul of parts for Siemens new Rhine-Ruhr

Express trains; and an overhaul contract for

X40 trains operated by SJ in Sweden.

Developing customer proximityOur ambition for growth in Services forms

part of our strategic plan, and is intimately

Services saw strong momentum in 2015-16, in line with our ambition outlined in our Creating Value 2018 strategic plan to become a one-stop shop for customers. Improved delivery, more proactive sales strategies, and a new regional organization that better serves customer needs were key to this success.

Services

OF GROUP SALES NOW REPRESENTED BY SERVICES

45%2.

Our services

34 ACTIVITY REPORT 2015/16FAIVELEY TRANSPORT 35STRENGHTENING OUR BUSINESS

Faiveley Transport launched its China

Divi sion in 2014 in response to customer

demand for products and services in metro,

high-speed rail and locomotive systems.

As a supplier for China’s largest metro sys-

tems, including the Shanghai, Beijing, Har-

bin, Guangzhou, Changchun, and Wuhan

metros, as well as Hong Kong's MTR, we

are well positioned in the domestic market.

Major contracts won domestically included

couplers and door systems for 744 cars of

the Hong Kong Metro and access doors

for Shanghai line 8 and 13. In another

significant achievement, we provided the

door system for the first driverless metro

lines in Beijing Yanfang line. We are also

well positioned as a pioneer in the grow-

ing LRV market by providing a pantograph

solution for Suzhou’s second LRV line. In

total, we are equipping 36 trains in Suzhou

with our pantographs.

Expanding abroad, adapting locally

Our Chinese manufacturing expertise is

recognized abroad, in North America,

South America, South-East Asia and

Europe. We won major contracts to sup-

ply parts manufactured in Shanghai for

the New Delhi and Kochi Metro Projects

in India.

In October 2015, we were awarded a mile-

stone contract to supply HVAC systems for

China Railway Rolling Stock Corp (CRRC)

in its first project for the Boston metro line

in the United States. We have preferred

supplier status with CRRC, especially in

door systems, pantographs and HVAC,

and continue to work in partnership with

the world’s largest train manufacturer.

In the high-speed rail sector, we have sus-

tained development in the growing Chi-

nese market. We currently offer braking

systems that are undergoing homologa-

tion for new high-speed platforms. In 2015,

our Brakes & Safety Division was success-

fully approved for homologation on three

Chinese-made trains (CRH3G, CRH3A

and CRH2-250).

For the locomotives segment in six-axle

and eight-axle generations, we have main-

tained a strong presence and developed

new products for locomotive platforms

such as the DMU 215, a future platform for

the global market. Our locomotive control

units, certified by local Chinese authori-

ties, are accepted by all platforms.

Focus on operational excellenceSince the launch of the “China Quality

Year” program in April 2015, we improved

local customer satisfaction by focusing on

quality standards in products, processes,

delivery and services.

Our intensive training programs, available

on all sites, as well as a dedicated learn-

ing campus in Beijing, allow us to increase

overall quality awareness. Each employee

now benefits from a minimum of 20 hours

China has become a major player in the global railway sector, with the world’s largest high-speed rail network, and the number one rolling stock manufacturer. This year, our China Division optimized services, remained competitive and won several key contracts. We also invested in employee training and research and development.

of training. In addition to developing prod-

uct and marketing training, our employee

engagement program brings a competitive

edge to our hiring efforts.

Moving forward, we continue to adapt to

the local market with our localization initi-

atives, inciting sales and marketing teams

to consistently update market intelligence

and develop acquisition strategies. We

also invest in research and development

to focus on strategic local projects that

boost our current position in the Chinese

market.

1.

2.

China

3.

4.

KILOMETRES OF HIGH-SPEED RAIL NETWORK IN CHINA

1. HVAC components assembly, Shanghai, China.

2. Door leaf painting, Shanghai, China.

3. Door leaf glass bonding, Shanghai, China.

4. Door operator assembling, Shanghai, China.

19,000

36

ASIA-PACIFIC

CENTRES OF COMPETENCE

COMMERCIAL SITES

PEOPLE

PRODUCTION AND MAINTENANCE SITESEUROPE

22 19

12 3,592

20 14

1,639

AMERICAS

10 9

720

A WORLDWIDE PARTNER

NEARLY

6,000EMPLOYEES IN 24 COUNTRIES

56 sitesINCLUDING:

52 COMMERCIAL SITES

42 PRODUCTIONAND MAINTENANCE SITES

12 CENTRES OF COMPETENCE

€1,105MILLION SALES

STRENGHTENING OUR BUSINESS

SALES BY GEOGRAPHIC REGION

SALES BY DIVISION

23%BRAKES & SAFETY

45%SERVICES

18%ENERGY & COMFORT

14%ACCESS

& MOBILITY

Design and layout:

Writing : IMPACT Communications.

3d Illustration: Manuel Bortoletti.

Photos credit: Christophe Recoura,

Patrick Sordoillet.

22%ASIA-PACIFIC

57%EUROPE

1%REST OF THE

WORLD

20%AMERICAS

WORKFORCE BY GEOGRAPHIC REGION

28%ASIA-PACIFIC

12%AMERICAS

60%EUROPE

Limited liability company governed by a Management Board and a Supervisory Board

with share capital of €14,614,152.

3, rue du 19 Mars 196292230 Gennevilliers – France

Tel.: +33(0)1 48 13 65 00Fax: +33(0)1 48 13 65 54

www.faiveleytransport.comE-mail: [email protected]

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